Physical and virtual currencies can both be counterfeited or stolen to various extents. Though physical money contains unique patterns and characteristics, counterfeiters have been able to create realistic bills which can be mistaken for real money by an untrained eye. Physical money is also susceptible to theft when carried or stored in an insecure location. As a result, many people opt to store money in banks for safekeeping. Though banks are relatively effective at safeguarding a person's money, many banks charge fees on users and can be inconvenient if money is needed at a moment's notice. Virtual currencies are beneficial in that they may be spent immediately when needed. However, virtual currencies may be counterfeited similar to physical currencies or double spent. Both can lead to a loss in the value of the virtual currency.
Accordingly, there is a present need for a currency that cannot be counterfeited and is readily available for users to spend. The present invention is a method of authenticating and exchanging virtual currency which prevents counterfeiting. The present invention leverages a plurality of remote servers which operate independently. This configuration ensures that if a single remote server malfunctions or is tampered with, the remaining servers will be unaffected and can even be used to fix the affected server. During a transaction, the remote servers are used to verify that virtual currency is genuine. Each unit of currency is associated with a certificate which updates as a transaction is made. The currency is managed online but may be stored virtually or physically printed and used as paper money. This creates an added versatility which maximizes convenience for users.